Company Sets Initial FY13 Revenue Growth Outlook and EPS Guidance

Medtronic, Inc. (NYSE:MDT) today announced financial results for its
fourth quarter and fiscal year ended April 27, 2012.

The company reported worldwide fourth quarter revenue of $4.297 billion,
compared to the $4.167 billion reported in the fourth quarter of fiscal
year 2011, an increase of 4 percent on a constant currency basis after
adjusting for a $42 million negative foreign currency impact or 3
percent as reported. As reported, fourth quarter net earnings were $991
million, or $0.94 per diluted share, an increase of 28 percent and 31
percent, respectively, over the same period in the prior year. As
detailed in the attached table, fourth quarter net earnings and diluted
earnings per share on a non-GAAP basis were $1.036 billion and $0.99, an
increase of 7 percent and 10 percent, respectively, over the same period
in the prior year.

The company reported fiscal year 2012 revenue of $16.184 billion, an
increase of 3 percent on a constant currency basis after adjusting for a
$273 million positive foreign currency impact or 4 percent as reported.
As reported, fiscal year 2012 net earnings were $3.617 billion or $3.41
per diluted share, an increase of 17 percent and 19 percent,
respectively. As detailed in the attached table, fiscal year 2012
non-GAAP net earnings and diluted earnings per share were $3.666 billion
and $3.46, an increase of 1 percent and 3 percent, respectively.

Fiscal year 2012 international revenue of $7.356 billion grew 7 percent
on a constant currency basis or 11 percent as reported. Fourth quarter
international revenue of $1.998 billion increased 7 percent on a
constant currency basis or 5 percent as reported. International sales
accounted for 46 percent of Medtronic's worldwide revenue in the
quarter. Emerging market revenue of $463 million increased 20 percent on
a constant currency basis or 19 percent as reported and now represents
11 percent of company revenue.

"I am pleased with our improved revenue growth this quarter in a dynamic
healthcare environment," said Omar Ishrak, Medtronic chairman and chief
executive officer. "Our growth was broad-based across our businesses and
geographies, including strong U.S. launches of the Resolute Integrity®
drug-eluting stent and RestoreSensor® spinal cord stimulator
and strong growth in emerging markets. As we continue to focus on
innovation, globalization, and execution, I see many opportunities for
improved growth."

Cardiac and Vascular Group

The Cardiac and Vascular Group at Medtronic includes the Cardiac Rhythm
Disease Management (CRDM) and CardioVascular businesses. The Group had
worldwide sales in the quarter of $2.253 billion, representing an
increase of 4 percent on a constant currency basis or 3 percent as
reported. Cardiac and Vascular Group international sales of $1.288
billion increased 5 percent on a constant currency basis or 3 percent as
reported. Group revenue performance was driven by Coronary,
Transcatheter Valves, Endovascular, AF Solutions, Renal Denervation, and
Peripheral, partially offset by small declines in Pacing and Implantable
Cardioverter Defibrillators (ICDs).

CRDM revenue of $1.295 billion was flat on a constant currency basis or
down 2 percent as reported. Fourth quarter revenue from ICDs was $744
million, down 1 percent on a constant currency basis, while pacing
revenue was $492 million, a decrease of 2 percent on a constant currency
basis. Continued growth of the AF Solutions business offset weaker ICD
and Pacing sales.

CardioVascular revenue of $958 million grew 10 percent on a constant
currency basis or 9 percent as reported. The Coronary business grew
worldwide revenue 12 percent on a constant currency basis and U.S.
revenue 24 percent on the impressive launch of the Resolute Integrity®
drug-eluting stent, resulting in a doubling of U.S. drug-eluting stent
market share. The Structural Heart and Endovascular & Peripheral
businesses grew worldwide revenue 7 percent and 10 percent,
respectively, on a constant currency basis.

Restorative Therapies Group

The Restorative Therapies Group at Medtronic includes the Spine,
Neuromodulation, Diabetes, and Surgical Technologies businesses. The
Group had worldwide sales in the quarter of $2.044 billion, representing
an increase of 4 percent as reported and on a constant currency basis.
Group revenue was driven by solid performances in Surgical Technologies,
Neuromodulation, and Diabetes, partially offset by declines in U.S.
Spine. Restorative Therapies Group international sales of $710 million
increased 11 percent on a constant currency basis or 9 percent as
reported.

Spine revenue of $818 million declined 6 percent on a constant currency
basis or declined 7 percent as reported. International sales for the
Spine business increased 8 percent on a constant currency basis. Core
Spine revenue of $629 million, which includes core metal constructs,
interspinous process decompression devices, and balloon kyphoplasty
products, declined 3 percent on a constant currency basis. Biologics
revenue of $189 million declined 16 percent on a constant currency
basis, driven by declines in U.S. sales of INFUSE®, partially
offset by revenue growth in Other Biologics.

Neuromodulation revenue of $463 million increased 8 percent on a
constant currency basis or 7 percent as reported. Growth was driven by
an increase in new implants in pain stimulation, deep brain stimulation
(DBS), and stimulation for incontinence indications. Growth in pain
stimulation was driven by the successful U.S. and Japan launches of the
RestoreSensor® spinal cord stimulator with its proprietary
AdaptiveStim® technology. Sales of DBS products were driven
by an increased focus on neurologist referrals. In Uro/Gastro, sales of
InterStim® Therapy for both urinary and bowel indications
drove growth.

Diabetes revenue of $392 million grew 8 percent on a constant currency
basis or 7 percent as reported. Growth in the quarter was driven by
strong sales of continuous glucose monitoring (CGM) products and
consumables. The Enlite CGM sensor had solid growth in Europe, and the
company continues to make progress on its IDE study for U.S. approval of
this next generation sensor.

Surgical Technologies revenue of $371 million grew 25 percent on a
constant currency basis or 24 percent as reported. Organic revenue
growth accelerated to 14 percent, after adjusting for $34 million of
revenue from the Advanced Energy business, consisting of the company's
Salient Surgical Technologies and PEAK Surgical acquisitions. Revenue
growth was driven by strong sales of capital equipment in the ENT and
Navigation businesses.

Fiscal Year 2013 Revenue Outlook and Earnings per Share Guidance

The company today provided its initial revenue outlook and diluted
earnings per share (EPS) guidance for fiscal year 2013.

The company expects fiscal year 2013 revenue growth in the range of 2 to
4 percent on a constant currency basis. The company expects fiscal year
2013 diluted EPS in the range of $3.62 to $3.70, which implies EPS
growth of 5 to 7 percent.

Earnings per share guidance excludes any unusual charges or gains that
might occur during the fiscal year and the impact of the non-cash charge
for convertible debt interest expense. The guidance provided only
reflects information available to Medtronic at this time.

In closing, Ishrak said, "We are beginning to gain momentum worldwide
and are optimistic about our ability to improve long-term growth as we
expand globally and identify new opportunities to deliver economic value
to the changing health care system."

Webcast Information

Medtronic will host a webcast today, May 22, at 8 a.m. EDT (7 a.m. CDT),
to provide information about its businesses for the public, analysts,
and news media. This quarterly webcast can be accessed by clicking on
the Investors link on the Medtronic home page at www.medtronic.com
and this earnings release will be archived at www.medtronic.com/newsroom.
Within 24 hours, a replay of the webcast and a transcript of the
company's prepared remarks will be available in the "Events &
Presentations" section of the Investors portion of the Medtronic website.

About Medtronic

Medtronic, Inc., is the world's leading medical technology company --
alleviating pain, restoring health, and extending life for people with
chronic disease.

This press release contains forward-looking statements related to
product growth drivers, strategies for growth, regulatory developments,
and Medtronic's future results of operations, which are subject to risks
and uncertainties, such as competitive factors, difficulties and delays
inherent in the development, manufacturing, marketing and sale of
medical products, government regulation and general economic conditions
and other risks and uncertainties described in Medtronic's periodic
reports on file with the Securities and Exchange Commission. Actual
results may differ materially from anticipated results. Medtronic does
not undertake to update its forward-looking statements.

Unless otherwise noted, all comparisons made in this news release are
on an "as reported basis," and not on a constant currency basis.References
to quarterly figures increasing or decreasing are in comparison to the
fourth quarter of fiscal year 2011, and references to annual figures
increasing or decreasing are in comparison to fiscal year 2011.

MEDTRONIC, INC.

WORLD WIDE REVENUE

(Unaudited)

($ millions)

FY11

FY11

FY11

FY11

FY11

FY12

FY12

FY12

FY12

FY12

QTR 1

QTR 2

QTR 3

QTR 4

Total

QTR 1

QTR 2

QTR 3

QTR 4

Total

REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT

$

1,226

$

1,248

$

1,221

$

1,315

$

5,010

$

1,253

$

1,268

$

1,192

$

1,295

$

5,007

Pacing Systems

473

472

450

506

1,901

508

511

467

492

1,978

Defibrillation Systems

722

745

735

760

2,962

697

708

674

744

2,822

AF & Other

31

31

36

49

147

48

49

51

59

207

CARDIOVASCULAR

$

717

$

738

$

774

$

879

$

3,109

$

850

$

830

$

837

$

958

$

3,475

Coronary

342

350

370

404

1,466

389

376

382

450

1,598

Structural Heart

224

237

241

274

977

275

266

265

289

1,094

Endovascular & Peripheral

151

151

163

201

666

186

188

190

219

783

CARDIAC & VASCULAR GROUP

$

1,943

$

1,986

$

1,995

$

2,194

$

8,119

$

2,103

$

2,098

$

2,029

$

2,253

$

8,482

SPINAL

$

829

$

850

$

861

$

875

$

3,414

$

825

$

839

$

784

$

818

$

3,267

Core Spinal

622

634

626

648

2,530

610

631

596

629

2,467

Biologics

207

216

235

227

884

215

208

188

189

800

NEUROMODULATION

$

370

$

388

$

401

$

432

$

1,592

$

397

$

421

$

419

$

463

$

1,700

DIABETES

$

312

$

326

$

341

$

368

$

1,347

$

355

$

367

$

367

$

392

$

1,481

SURGICAL TECHNOLOGIES

$

235

$

244

$

259

$

298

$

1,036

$

266

$

298

$

319

$

371

$

1,254

RESTORATIVE THERAPIES GROUP

$

1,746

$

1,808

$

1,862

$

1,973

$

7,389

$

1,843

$

1,925

$

1,889

$

2,044

$

7,702

TOTAL CONTINUING OPERATIONS

$

3,689

$

3,794

$

3,857

$

4,167

$

15,508

$

3,946

$

4,023

$

3,918

$

4,297

$

16,184

ADJUSTMENTS :

CURRENCY IMPACT (1)

$

181

$

120

$

13

$

(42

)

$

273

COMPARABLE OPERATIONS (1)

$

3,689

$

3,794

$

3,857

$

4,167

$

15,508

$

3,765

$

3,903

$

3,905

$

4,339

$

15,911

(1) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation on revenue.
In addition, Medtronic management uses results of operations before
currency translation to evaluate the operational performance of the
Company and as a basis for strategic planning. Investors should consider
these non-GAAP measures in addition to, and not as a substitute for,
financial performance measures prepared in accordance with GAAP.

Note: The data in this schedule has been intentionally rounded to the
nearest million and therefore the quarterly revenue may not sum to the
fiscal year to date revenue.

MEDTRONIC, INC.

U.S. REVENUE

(Unaudited)

($ millions)

FY11

FY11

FY11

FY11

FY11

FY12

FY12

FY12

FY12

FY12

QTR 1

QTR 2

QTR 3

QTR 4

Total

QTR 1

QTR 2

QTR 3

QTR 4

Total

REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT

$

691

$

699

$

651

$

650

$

2,690

$

649

$

667

$

619

$

650

$

2,584

Pacing Systems

214

210

182

207

812

217

220

197

205

838

Defibrillation Systems

467

481

458

425

1,831

411

423

396

417

1,647

AF & Other

10

8

11

18

47

21

24

26

28

99

CARDIOVASCULAR

$

241

$

248

$

249

$

289

$

1,026

$

266

$

264

$

258

$

315

$

1,103

Coronary

92

96

94

101

382

90

85

82

125

383

Structural Heart

89

91

92

101

373

100

98

97

103

398

Endovascular & Peripheral

60

61

63

87

271

76

81

79

87

322

CARDIAC & VASCULAR GROUP

$

932

$

947

$

900

$

939

$

3,716

$

915

$

931

$

877

$

965

$

3,687

SPINAL

$

631

$

645

$

646

$

631

$

2,553

$

589

$

599

$

555

$

557

$

2,300

Core Spinal

439

445

431

429

1,744

398

414

390

394

1,596

Biologics

192

200

215

202

809

191

185

165

163

704

NEUROMODULATION

$

261

$

278

$

282

$

286

$

1,108

$

272

$

295

$

287

$

315

$

1,170

DIABETES

$

203

$

213

$

219

$

228

$

863

$

214

$

228

$

226

$

238

$

906

SURGICAL TECHNOLOGIES

$

149

$

148

$

156

$

179

$

632

$

156

$

184

$

200

$

224

$

765

RESTORATIVE THERAPIES GROUP

$

1,244

$

1,284

$

1,303

$

1,324

$

5,156

$

1,231

$

1,306

$

1,268

$

1,334

$

5,141

TOTAL CONTINUING OPERATIONS

$

2,176

$

2,231

$

2,203

$

2,263

$

8,872

$

2,146

$

2,237

$

2,145

$

2,299

$

8,828

ADJUSTMENTS :

CURRENCY IMPACT

$

-

$

-

$

-

$

-

$

-

COMPARABLE OPERATIONS

$

2,176

$

2,231

$

2,203

$

2,263

$

8,872

$

2,146

$

2,237

$

2,145

$

2,299

$

8,828

Note: The data in this schedule has been intentionally rounded to the
nearest million and therefore the quarterly revenue may not sum to the
fiscal year to date revenue.

MEDTRONIC, INC.

INTERNATIONAL REVENUE

(Unaudited)

($ millions)

FY11

FY11

FY11

FY11

FY11

FY12

FY12

FY12

FY12

FY12

QTR 1

QTR 2

QTR 3

QTR 4

Total

QTR 1

QTR 2

QTR 3

QTR 4

Total

REPORTED REVENUE :

CARDIAC RHYTHM DISEASE MANAGEMENT

$

535

$

549

$

570

$

665

$

2,320

$

604

$

601

$

573

$

645

$

2,423

Pacing Systems

259

262

268

299

1,089

291

291

270

287

1,140

Defibrillation Systems

255

264

277

335

1,131

286

285

278

327

1,175

AF & Other

21

23

25

31

100

27

25

25

31

108

CARDIOVASCULAR

$

476

$

490

$

525

$

590

$

2,083

$

584

$

566

$

579

$

643

$

2,372

Coronary

250

254

276

303

1,084

299

291

300

325

1,215

Structural Heart

135

146

149

173

604

175

168

168

186

696

Endovascular & Peripheral

91

90

100

114

395

110

107

111

132

461

CARDIAC & VASCULAR GROUP

$

1,011

$

1,039

$

1,095

$

1,255

$

4,403

$

1,188

$

1,167

$

1,152

$

1,288

$

4,795

SPINAL

$

198

$

205

$

215

$

244

$

861

$

236

$

240

$

229

$

261

$

967

Core Spinal

183

189

195

219

786

212

217

206

235

871

Biologics

15

16

20

25

75

24

23

23

26

96

NEUROMODULATION

$

109

$

110

$

119

$

146

$

484

$

125

$

126

$

132

$

148

$

530

DIABETES

$

109

$

113

$

122

$

140

$

484

$

141

$

139

$

141

$

154

$

575

SURGICAL TECHNOLOGIES

$

86

$

96

$

103

$

119

$

404

$

110

$

114

$

119

$

147

$

489

RESTORATIVE THERAPIES GROUP

$

502

$

524

$

559

$

649

$

2,233

$

612

$

619

$

621

$

710

$

2,561

TOTAL CONTINUING OPERATIONS

$

1,513

$

1,563

$

1,654

$

1,904

$

6,636

$

1,800

$

1,786

$

1,773

$

1,998

$

7,356

ADJUSTMENTS :

CURRENCY IMPACT (1)

$

181

$

120

$

13

$

(42

)

$

273

COMPARABLE OPERATIONS (1)

$

1,513

$

1,563

$

1,654

$

1,904

$

6,636

$

1,619

$

1,666

$

1,760

$

2,040

$

7,083

(1) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation on revenue.
In addition, Medtronic management uses results of operations before
currency translation to evaluate the operational performance of the
Company and as a basis for strategic planning. Investors should consider
these non-GAAP measures in addition to, and not as a substitute for,
financial performance measures prepared in accordance with GAAP.

Note: The data in this schedule has been intentionally rounded to the
nearest million and therefore the quarterly revenue may not sum to the
fiscal year to date revenue.

(1) The data in this schedule has been intentionally rounded to the
nearest $0.01, and therefore, may not sum.

(a) The $64 million ($0.06 per share) after-tax ($87 million pre-tax)
restructuring charge is the net impact of an $88 million after-tax ($118
million pre-tax) charge related to the fiscal year 2012 initiative,
partially offset by a $24 million after-tax ($31 million pre-tax)
reversal of excess restructuring reserves related to the fiscal year
2011 initiative. The fiscal year 2012 initiative restructuring charge
consisted of employee termination costs, asset write-downs, contract
termination fees, and other related costs. The fiscal year 2012
initiative was designed to hold general, administrative and indirect
distribution costs flat in certain organizations while prioritizing
investment in research and development, sales, and marketing in
geographies, businesses, and products where faster growth is
anticipated, such as emerging markets and new technologies. The fiscal
year 2011 initiative reversal of excess restructuring reserves was due
to certain employees identified for elimination finding positions
elsewhere within the Company, favorable severance negotiations outside
the U.S., and more favorable than expected outcomes in the sub-leasing
of previously vacated properties. In addition to disclosing
restructuring charges that are determined in accordance with U.S.
generally accepted accounting principles (U.S. GAAP), Medtronic
management believes that in order to properly understand its short-term
and long-term financial trends, investors may find it useful to consider
the impact of excluding these restructuring charges, net. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates these restructuring charges, net when evaluating the
operating performance of the Company. Investors should consider this
non-GAAP measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(b) The $57 million ($0.05 per share) after-tax ($90 million pre-tax)
certain litigation charges, net relates to the agreement in principle to
settle the federal securities class action initiated by the Minneapolis
Firefighters' Relief Association in December 2008. During the fourth
quarter of fiscal year 2012, Medtronic reached a settlement agreement in
principle to resolve all of these class claims for $85 million and
incurred $5 million in additional litigation fees as a result of the
agreement. In addition to disclosing certain litigation charges, net
that are determined in accordance with U.S. GAAP, Medtronic management
believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the
impact of excluding these certain litigation charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates these certain litigation charges when evaluating the
operating performance of the Company. Investors should consider this
non-GAAP measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(c) The $13 million ($0.01 per share) after-tax ($13 million pre-tax)
acquisition-related items include charges related to the change in fair
value of contingent milestone payments associated with acquisitions
subsequent to April 29, 2009. In addition to disclosing
acquisition-related items that are determined in accordance with U.S.
GAAP, Medtronic management believes that in order to properly understand
its short-term and long-term financial trends, investors may find it
useful to consider the impact of excluding these acquisition-related
items. Management believes that the resulting non-GAAP financial measure
provides useful information to investors regarding the underlying
business trends and performance of the Company's ongoing operations and
is useful for period over period comparisons of such operations.
Medtronic management eliminates these acquisition-related items when
evaluating the operating performance of the Company. Investors should
consider this non-GAAP measure in addition to, and not as a substitute
for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same
or similar to measures presented by other companies.

(d) The Financial Accounting Standards Board (FASB) authoritative
guidance for convertible debt accounting has resulted in an after-tax
impact to net earnings of $14 million ($0.01 per share) and $25 million
($0.02 per share) for the three months ended April 27, 2012 and
April 29, 2011, respectively. The pre-tax impact to interest expense,
net was $22 million and $40 million for the three months ended April 27,
2012 and April 29, 2011, respectively. In addition to disclosing the
financial statement impact of this authoritative guidance that is
determined in accordance with U.S. GAAP, Medtronic management believes
that in order to properly understand its short-term and long-term
financial trends, investors may find it useful to consider the impact of
excluding the impact of this authoritative guidance. Management believes
that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates the impact of this authoritative guidance when evaluating the
operating performance of the Company. Investors should consider this
non-GAAP measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(e) The $103 million ($0.10 per share) after-tax ($200 million pre-tax)
net gain from Physio-Control divestiture-related items includes a $204
million after-tax ($218 million pre-tax) gain recognized on the sale of
Physio-Control on January 30, 2012, partially offset by the reversal of
an $84 million deferred income tax benefit recorded in the third quarter
of fiscal year 2012 and $17 million of after-tax ($18 million pre-tax)
transaction costs. The deferred income tax benefit was recorded in
accordance with U.S. GAAP as the Company was required to establish a
deferred tax asset on the difference between its tax and book basis in
the shares of Physio-Control, up to the expected amount of gain, at the
point in time the Company classified Physio-Control as held for sale in
the third quarter of fiscal year 2012. In the fourth quarter of fiscal
year 2012 when the Company recorded the Physio-Control disposition, the
Company wrote-off the deferred tax asset with a corresponding deferred
income tax expense. In addition to disclosing Physio-Control
divestiture-related items that are determined in accordance with U.S.
GAAP, Medtronic management believes that in order to properly understand
its short-term and long-term financial trends, investors may find it
useful to consider the impact of excluding Physio-Control
divestiture-related items. Management believes that the resulting
non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the
Company's ongoing operations and is useful for period over period
comparisons of such operations. Medtronic management eliminates
Physio-Control divestiture-related items when evaluating the operating
performance of the Company. Investors should consider this non-GAAP
measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(f) The $198 million ($0.18 per share) after-tax ($272 million pre-tax)
restructuring charge, net consisted of employee termination costs, asset
write-downs, contract termination fees, and other related costs.
Included in the employee termination costs were expenses associated with
compensation and early retirement benefits provided to certain
employees. As part of the asset write-downs, the Company recorded a $9
million after-tax ($11 million pre-tax) expense within cost of products
sold related to inventory write-offs of discontinued product lines and
production-related asset impairments. The charge includes $2 million
after-tax ($2 million pre-tax) of Physio-Control restructuring expense
that is included in Physio-Control divestiture-related costs on our
consolidated statement of earnings. Additionally, included in the other
related costs is an after-tax intangible asset impairment of $12 million
($19 million pre-tax) related to the discontinuance of a product line
within the CardioVascular business. The fiscal year 2011 restructuring
initiative was designed to restructure the business to align its cost
structure to current market conditions and to continue to position the
Company for long-term sustainable growth in emerging markets and new
technologies. This initiative impacted most businesses and certain
corporate functions. In addition to disclosing restructuring charges
that are determined in accordance with U.S. GAAP, Medtronic management
believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the
impact of excluding these restructuring charges. Management believes
that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates these restructuring charges when evaluating the operating
performance of the Company. Investors should consider this non-GAAP
measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(g) The $47 million ($0.04 per share) after-tax ($47 million pre-tax)
certain litigation charges, net relates to the settlement of certain
product litigation involving the Sprint Fidelis family of defibrillation
leads. During the fourth quarter of fiscal year 2011, Medtronic
renegotiated the terms of the October 15, 2010 agreement resulting in a
$47 million reversal of the previously recorded amount. In addition to
disclosing certain litigation charges, net that are determined in
accordance with U.S. GAAP, Medtronic management believes that in order
to properly understand its short-term and long-term financial trends,
investors may find it useful to consider the impact of excluding these
certain litigation charges. Management believes that the resulting
non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the
Company's ongoing operations and is useful for period over period
comparisons of such operations. Medtronic management eliminates these
certain litigation charges when evaluating the operating performance of
the Company. Investors should consider this non-GAAP measure in addition
to, and not as a substitute for, financial performance measures prepared
in accordance with U.S. GAAP. In addition, this non-GAAP financial
measure may not be the same or similar to measures presented by other
companies.

(h) The $14 million ($0.01 per share) after-tax ($14 million pre-tax)
acquisition-related items include charges related to the change in fair
value of contingent milestone payments associated with acquisitions
subsequent to April 29, 2009. In addition to disclosing
acquisition-related items that are determined in accordance with U.S.
GAAP, Medtronic management believes that in order to properly understand
its short-term and long-term financial trends, investors may find it
useful to consider the impact of excluding these acquisition-related
items. Management believes that the resulting non-GAAP financial measure
provides useful information to investors regarding the underlying
business trends and performance of the Company's ongoing operations and
is useful for period over period comparisons of such operations.
Medtronic management eliminates these acquisition-related items when
evaluating the operating performance of the Company. Investors should
consider this non-GAAP measure in addition to, and not as a substitute
for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same
or similar to measures presented by other companies.

(i) Included in our non-GAAP net earnings is $17 million ($0.02 per
share and $25 million pre-tax) after-tax income from the operations of
the Physio-Control business for the three months ended April 29, 2011,
which are included in earnings from discontinued operations on our
consolidated statements of earnings. The Company has included this
income in its non-GAAP net earnings as the disposition did not occur
until the beginning of the fourth quarter of fiscal year 2012 and thus
the income was earned through the operations of the Company. Medtronic
management believes that in order to properly understand its short-term
and long-term financial trends, investors may find it useful to consider
the net impact of including the operating income of the Physio-Control
business. Management believes that the resulting non-GAAP financial
measure provides useful information to investors regarding the
underlying business trends and performance of the Company's ongoing
operations and is useful for period over period comparisons of such
operations. Investors should consider this non-GAAP measure in addition
to, and not as a substitute for, financial performance measures prepared
in accordance with U.S. GAAP. In addition, this non-GAAP financial
measure may not be the same or similar to measures presented by other
companies.

Note: The data in this schedule has been intentionally rounded and
therefore the first, second, third, and fourth quarter data may not sum
to the fiscal year to date totals.

(1)The data in this schedule has been intentionally rounded
to the nearest $0.01, and therefore, may not sum.

(a) The $64 million ($0.06 per share) after-tax ($87 million pre-tax)
restructuring charge is the net impact of an $88 million after-tax ($118
million pre-tax) charge related to the fiscal year 2012 initiative,
partially offset by a $24 million after-tax ($31 million pre-tax)
reversal of excess restructuring reserves related to the fiscal year
2011 initiative. The fiscal year 2012 initiative restructuring charge
consisted of employee termination costs, asset write-downs, contract
termination fees, and other related costs. The fiscal year 2012
initiative was designed to hold general, administrative and indirect
distribution costs flat in certain organizations while prioritizing
investment in research and development, sales, and marketing in
geographies, businesses, and products where faster growth is
anticipated, such as emerging markets and new technologies. The fiscal
year 2011 initiative reversal of excess restructuring reserves was due
to certain employees identified for elimination finding positions
elsewhere within the Company, favorable severance negotiations outside
the U.S., and more favorable than expected outcomes in the sub-leasing
of previously vacated properties. In addition to disclosing
restructuring charges that are determined in accordance with U.S.
generally accepted accounting principles (U.S. GAAP), Medtronic
management believes that in order to properly understand its short-term
and long-term financial trends, investors may find it useful to consider
the impact of excluding these restructuring charges, net. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates these restructuring charges, net when evaluating the
operating performance of the Company. Investors should consider this
non-GAAP measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(b) The $57 million ($0.05 per share) after-tax ($90 million pre-tax)
certain litigation charges, net relates to the agreement in principle to
settle the federal securities class action initiated by the Minneapolis
Firefighters' Relief Association in December 2008. During the fourth
quarter of fiscal year 2012, Medtronic reached a settlement agreement in
principle to resolve all of these class claims for $85 million and
incurred $5 million in additional litigation fees as a result of the
agreement. In addition to disclosing certain litigation charges, net
that are determined in accordance with U.S. GAAP, Medtronic management
believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the
impact of excluding these certain litigation charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates these certain litigation charges when evaluating the
operating performance of the Company. Investors should consider this
non-GAAP measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(c) The $45 million ($0.04 per share) after-tax ($45 million pre-tax)
certain acquisition-related items include charges related to the change
in fair value of contingent milestone payments associated with
acquisitions subsequent to April 29, 2009. In addition to disclosing
acquisition-related items that are determined in accordance with U.S.
GAAP, Medtronic management believes that in order to properly understand
its short-term and long-term financial trends, investors may find it
useful to consider the impact of excluding these acquisition-related
items. Management believes that the resulting non-GAAP financial measure
provides useful information to investors regarding the underlying
business trends and performance of the Company's ongoing operations and
is useful for period over period comparisons of such operations.
Medtronic management eliminates these acquisition-related items when
evaluating the operating performance of the Company. Investors should
consider this non-GAAP measure in addition to, and not as a substitute
for, financial performance measures prepared in accordance with U.S.
GAAP. In addition, this non-GAAP financial measure may not be the same
or similar to measures presented by other companies.

(d) The Financial Accounting Standards Board (FASB) authoritative
guidance for convertible debt accounting has resulted in an after-tax
impact to net earnings of $53 million ($0.05 per share) and $106 million
($0.10 per share) for the fiscal years ended April 27, 2012 and
April 29, 2011, respectively. The pre-tax impact to interest expense,
net was $85 million and $170 million for the fiscal years ended
April 27, 2012 and April 29, 2011, respectively. In addition to
disclosing the financial statement impact of this authoritative guidance
that is determined in accordance with U.S. GAAP, Medtronic management
believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the
impact of excluding the impact of this authoritative guidance.
Management believes that the resulting non-GAAP financial measure
provides useful information to investors regarding the underlying
business trends and performance of the Company's ongoing operations and
is useful for period over period comparisons of such operations.
Medtronic management eliminates the impact of this authoritative
guidance when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not
as a substitute for, financial performance measures prepared in
accordance with U.S. GAAP. In addition, this non-GAAP financial measure
may not be the same or similar to measures presented by other companies.

(e) The $170 million ($0.16 per share) after-tax ($176 million pre-tax)
net gain from Physio-Control divestiture-related items includes a $204
million after-tax ($218 million pre-tax) gain recognized on the sale of
Physio-Control, partially offset by $34 million of after-tax ($42
million pre-tax) transaction costs. In addition to disclosing
Physio-Control divestiture-related items that are determined in
accordance with U.S. GAAP, Medtronic management believes that in order
to properly understand its short-term and long-term financial trends,
investors may find it useful to consider the impact of excluding
Physio-Control divestiture-related items. Management believes that the
resulting non-GAAP financial measure provides useful information to
investors regarding the underlying business trends and performance of
the Company's ongoing operations and is useful for period over period
comparisons of such operations. Medtronic management eliminates
Physio-Control divestiture-related items when evaluating the operating
performance of the Company. Investors should consider this non-GAAP
measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(f) Included in our non-GAAP net earnings is $32 million ($0.03 per
share and $48 million pre-tax) and $43 million ($0.04 per share and $64
million pre-tax) after-tax income from the operations of the
Physio-Control business for the fiscal years ended April 27, 2012 and
April 29, 2011, respectively, which are included in earnings from
discontinued operations on our consolidated statements of earnings. The
Company has included this income in its non-GAAP net earnings as the
disposition did not occur until the beginning of the fourth quarter of
fiscal year 2012 and thus the income was earned through the operations
of the Company. Additionally, included in our non-GAAP net earnings for
the fiscal year ended April 27, 2012 is a $5 million after-tax ($5
million pre-tax) charge for transaction costs incurred related to the
acquisitions of Salient Surgical Technologies, Inc. (Salient) and PEAK
Surgical, Inc. (PEAK), and a non-cash gain of $38 million after-tax ($38
million pre-tax) related to previously held investments in Salient and
PEAK, which are included in acquisition-related items on our
consolidated statements of earnings. The Company has included these
items in its non-GAAP net earnings to offset the dilution to fiscal year
2012 net earnings in the second half of this fiscal year from Salient
and PEAK operations. Medtronic management believes that in order to
properly understand its short-term and long-term financial trends,
investors may find it useful to consider income from the operations of
the Physio-Control business and the net impact of the Salient and PEAK
acquisitions. Management believes that the resulting non-GAAP financial
measure provides useful information to investors regarding the
underlying business trends and performance of the Company's ongoing
operations and is useful for period over period comparisons of such
operations. Investors should consider this non-GAAP measure in addition
to, and not as a substitute for, financial performance measures prepared
in accordance with U.S. GAAP. In addition, this non-GAAP financial
measure may not be the same or similar to measures presented by other
companies.

(g) The $198 million ($0.18 per share) after-tax ($272 million pre-tax)
restructuring charge, net consisted of employee termination costs, asset
write-downs, contract termination fees, and other related costs.
Included in the employee termination costs were expenses associated with
compensation and early retirement benefits provided to certain
employees. As part of the asset write-downs, the Company recorded a $9
million after-tax ($11 million pre-tax) expense within cost of products
sold related to inventory write-offs of discontinued product lines and
production-related asset impairments. The charge includes $2 million
after-tax ($2 million pre-tax) of Physio-Control restructuring expense
that is included in Physio-Control divestiture-related costs on our
consolidated statement of earnings. Additionally, included in the other
related costs is an after-tax intangible asset impairment of $12 million
($19 million pre-tax) related to the discontinuance of a product line
within the CardioVascular business. The fiscal year 2011 restructuring
initiative was designed to restructure the business to align its cost
structure to current market conditions and to continue to position the
Company for long-term sustainable growth in emerging markets and new
technologies. This initiative impacted most businesses and certain
corporate functions. In addition to disclosing restructuring charges
that are determined in accordance with U.S. GAAP, Medtronic management
believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the
impact of excluding these restructuring charges. Management believes
that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates these restructuring charges when evaluating the operating
performance of the Company. Investors should consider this non-GAAP
measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(h) The $243 million ($0.22 per share) after-tax ($245 million pre-tax)
certain litigation charges, net relate primarily to a settlement
involving the Sprint Fidelis family of defibrillation leads and
accounting charges for Other Matters litigation. The Sprint Fidelis
settlement relates to the resolution of certain outstanding product
litigation related to the Sprint Fidelis family of defibrillation leads
that were subject to a field action announced October 15, 2007. The
terms of the agreement stipulate Medtronic will pay plaintiffs to settle
substantially all pending U.S. lawsuits and claims, subject to certain
conditions. In addition to disclosing certain litigation charges, net
that are determined in accordance with U.S. GAAP, Medtronic management
believes that in order to properly understand its short-term and
long-term financial trends, investors may find it useful to consider the
impact of excluding these certain litigation charges. Management
believes that the resulting non-GAAP financial measure provides useful
information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and is useful for period
over period comparisons of such operations. Medtronic management
eliminates these certain litigation charges when evaluating the
operating performance of the Company. Investors should consider this
non-GAAP measure in addition to, and not as a substitute for, financial
performance measures prepared in accordance with U.S. GAAP. In addition,
this non-GAAP financial measure may not be the same or similar to
measures presented by other companies.

(i) The $9 million ($0.01 per share) after-tax ($14 million pre-tax
charge) certain acquisition-related items, net gain included an $85
million after-tax ($85 million pre-tax) gain resulting from the
acquisition of Ardian, Inc. (Ardian) partially offset by $39 million
after-tax ($55 million pre-tax) of certain acquisition-related costs,
$11 million after-tax ($15 million pre-tax) IPR&D charge related to the
NeuroPace, Inc. (NeuroPace) cross-licensing agreement, $12 million
after-tax ($15 million pre-tax) of IPR&D charges related to asset
purchases in the CardioVascular and Surgical Technologies businesses,
and $14 million after-tax ($14 million pre-tax) related to the change in
fair value of contingent milestone payments associated with acquisitions
subsequent to April 29, 2009. As a result of the Ardian acquisition, in
accordance with the FASB authoritative guidance on business
combinations, Medtronic recognized an $85 million gain resulting from
its previously held 11.3 percent ownership position. The certain
acquisition-related costs included legal fees, severance costs, change
in control costs, banker fees, other professional services fees, and
contract termination costs of $16 million after-tax ($24 million
pre-tax) related to the acquisition of ATS Medical Inc. and $23 million
after-tax ($31 million pre-tax) related to the acquisitions of
Osteotech, Inc. and Ardian that were expensed in the period. The
NeuroPace IPR&D charge related to a milestone payment under existing
terms of a royalty-bearing, non-exclusive patent cross-licensing
agreement with NeuroPace that the Company entered into in the first
quarter of fiscal year 2006. In the above IPR&D charges, product
commercialization had not yet been achieved. As a result, in accordance
with the FASB authoritative guidance these charges were immediately
expensed as IPR&D since technological feasibility had not yet been
reached and such technology had no future alternative use. In addition
to disclosing certain acquisition-related items that are determined in
accordance with U.S. GAAP, Medtronic management believes that in order
to properly understand its short-term and long-term financial trends,
investors may find it useful to consider the impact of excluding certain
acquisition-related items. Management believes that the resulting
non-GAAP financial measure provides useful information to investors
regarding the underlying business trends and performance of the
Company's ongoing operations and is useful for period over period
comparisons of such operations. Medtronic management eliminates certain
acquisition-related items when evaluating the operating performance of
the Company. Investors should consider this non-GAAP measure in addition
to, and not as a substitute for, financial performance measures prepared
in accordance with U.S. GAAP. In addition, this non-GAAP financial
measure may not be the same or similar to measures presented by other
companies.

(j) The $9 million ($0.01 per share) after-tax ($14 million pre-tax)
executive separation costs include costs associated with the transition
and retirement of Chief Executive Officer, William Hawkins. These costs
were included in selling, general, and administrative expense on our
consolidated statements of earnings. In addition to disclosing executive
separation costs that are determined in accordance with U.S. GAAP,
Medtronic management believes that in order to properly understand its
short-term and long-term financial trends, investors may find it useful
to consider the impact of excluding these executive separation costs.
Management believes that the resulting non-GAAP financial measure
provides useful information to investors regarding the underlying
business trends and performance of the Company's ongoing operations and
is useful for period over period comparisons of such operations.
Medtronic management eliminates the impact of these executive separation
costs when evaluating the operating performance of the Company.
Investors should consider this non-GAAP measure in addition to, and not
as a substitute for, financial performance measures prepared in
accordance with U.S. GAAP. In addition, this non-GAAP financial measure
may not be the same or similar to measures presented by other companies.

(a) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation on revenue.
In addition, Medtronic management uses results of operations before
currency translation to evaluate the operational performance of the
Company and as a basis for strategic planning. Investors should consider
these non-GAAP measures in addition to, and not as a substitute for,
financial performance measures prepared in accordance with U.S. GAAP.

(a) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation on revenue.
In addition, Medtronic management uses results of operations before
currency translation to evaluate the operational performance of the
Company and as a basis for strategic planning. Investors should consider
these non-GAAP measures in addition to, and not as a substitute for,
financial performance measures prepared in accordance with U.S. GAAP.

MEDTRONIC, INC.

RECONCILIATION OF INTERNATIONAL REVENUE GROWTH TO CONSTANT CURRENCY
GROWTH

(Unaudited)

(in millions)

Three months ended

Currency Impact

Constant

April 27,

April 29,

Reported

on Growth (a)

Currency

2012

2011

Growth

Dollar

Percentage

Growth (a)

Reported Revenue:

Pacing Systems

$

287

$

299

(4

)

%

$

(5

)

(2

)

%

(2

)

%

Defibrillation Systems

327

335

(2

)

(10

)

(3

)

1

AF & Other

31

31

-

(2

)

(6

)

6

Cardiac Rhythm Disease Management

645

665

(3

)

(17

)

(3

)

-

Coronary

325

303

7

(4

)

(2

)

9

Structural Heart

186

173

8

(5

)

(2

)

10

Endovascular & Peripheral

132

114

16

(3

)

(2

)

18

CardioVascular

643

590

9

(12

)

(2

)

11

Cardiac & Vascular Group

1,288

1,255

3

(29

)

(2

)

5

Core Spinal

235

219

7

(2

)

(1

)

8

Biologics

26

25

4

(1

)

(4

)

8

Spinal

261

244

7

(3

)

(1

)

8

Neuromodulation

148

146

1

(4

)

(3

)

4

Diabetes

154

140

10

(4

)

(3

)

13

Surgical Technologies

147

119

24

(2

)

(1

)

25

Restorative Therapies Group

710

649

9

(13

)

(2

)

11

Total

$

1,998

$

1,904

5

%

$

(42

)

(2

)

%

7

%

(a) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation on revenue.
In addition, Medtronic management uses results of operations before
currency translation to evaluate the operational performance of the
Company and as a basis for strategic planning. Investors should consider
these non-GAAP measures in addition to, and not as a substitute for,
financial performance measures prepared in accordance with U.S. GAAP.

MEDTRONIC, INC.

RECONCILIATION OF INTERNATIONAL REVENUE GROWTH TO CONSTANT CURRENCY
GROWTH

(Unaudited)

(in millions)

Fiscal year ended

Currency Impact

Constant

April 27,

April 29,

Reported

on Growth (a)

Currency

2012

2011

Growth

Dollar

Percentage

Growth (a)

Reported Revenue:

Pacing Systems

$

1,140

$

1,089

5

%

$

47

5

%

-

%

Defibrillation Systems

1,175

1,131

4

47

4

-

AF & Other

108

100

8

2

2

6

Cardiac Rhythm Disease Management

2,423

2,320

4

96

4

-

Coronary

1,215

1,084

12

42

4

8

Structural Heart

696

604

15

21

3

12

Endovascular & Peripheral

461

395

17

15

4

13

CardioVascular

2,372

2,083

14

78

4

10

Cardiac & Vascular Group

4,795

4,403

9

174

4

5

Core Spinal

871

786

11

41

5

6

Biologics

96

75

28

3

4

24

Spinal

967

861

12

44

5

7

Neuromodulation

530

484

10

21

5

5

Diabetes

575

484

19

18

4

15

Surgical Technologies

489

404

21

16

4

17

Restorative Therapies Group

2,561

2,233

15

99

5

10

Total

$

7,356

$

6,636

11

%

$

273

4

%

7

%

(a) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation on revenue.
In addition, Medtronic management uses results of operations before
currency translation to evaluate the operational performance of the
Company and as a basis for strategic planning. Investors should consider
these non-GAAP measures in addition to, and not as a substitute for,
financial performance measures prepared in accordance with U.S. GAAP.

(a) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation on revenue.
In addition, Medtronic management uses results of operations before
currency translation to evaluate the operational performance of the
Company and as a basis for strategic planning. Investors should consider
these non-GAAP measures in addition to, and not as a substitute for,
financial performance measures prepared in accordance with U.S. GAAP.

(a) Medtronic management believes that in order to properly understand
Medtronic's short-term and long-term financial trends, investors may
wish to consider the impact of foreign currency translation and the
Advanced Energy business on Surgical Technologies' revenue growth. In
addition, Medtronic management uses Surgical Technologies revenue
adjusted for foreign currency translation and the Advanced Energy
business to evaluate operational performance of the Company. Investors
should consider these non-GAAP measures in addition to, and not as a
substitute for, financial performance measures prepared in accordance
with U.S. GAAP.